Item B: Proposed Modifications to the Parks Systems Development Charge Methodology and Rates

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Proposed Modifications to the Parks Systems Development Charge Methodology and Rates Meeting Date: October 25, 2006 Agenda Item Number: B Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 682-5216 ISSUE STATEMENT The purpose of this work session is to obtain City Council direction regarding proposed modifications to the parks system development charge (SDC) methodology. The proposed modifications reflect a comprehensive review and update to the methodology and rates. Key issues emerging from the review include potential imposition of a non-residential charge, and the growth allocation method to be used for neighborhood parks. BACKGROUND The council last adjusted the parks SDC in July 2003. The adjustment was considered an interim update while staff and SDC consultants, with the assistance of the Public Works Rates Advisory Committee (RAC), completed a comprehensive review of the parks SDC. This review was conducted in parallel with the Parks Recreation and Open Space (PROS) Plan update. The interim update adjusted the SDC rates based on costs of parks land acquisition and development, resulting in an approximate 37% increase in the parks SDC, but did not modify the SDC methodology itself. In reviewing interim adjustments to the parks SDC on April 28, 2003, the City Council passed a motion directing the City Manager to pursue future imposition of park SDCs on industrial, commercial, and office uses. Public Works staff and SDC consultants (SDC Project Team) worked with the RAC to evaluate potential methodological approaches to respond to the council’s direction. These approaches are described in more detail in Attachment A. Key findings of the review of available options include the following: Nonresidential parks SDCs are assessed by other communities; however, assessment methods ? often rely on an inferred relationship and indirect measurement of capacity demand. A nexus between nonresidential development and park capacity demand, and a method ? distributing capacity demand between residential and nonresidential, can be established using the results of the City of Eugene parks and recreation facilities’ user survey. Inclusion of a non-residential SDC is a methodological choice which is revenue neutral. A ? nonresidential SDC expands the user base (i.e. equivalent population), across which park capacity costs are divided; it does not increase the system-wide capacity need or costs, nor provide additional SDC revenue. A key challenge in developing a nonresidential SDC is determining assessment methods which ? provide equity amongst various types and sizes of development. L:\CMO\2006 Council Agendas\M061025\S061025B.doc